Home » Stocks & Shares » Trade optimism fuels FTSE 100 index out of a two-month low

Trade optimism fuels FTSE 100 index out of a two-month low

Michael Harris
  • December 6th 2019, 10:33
  • Trade optimism helps FTSE 100 to climb out of a two-month low.
  • FTSE 100 has printed a gain of slightly under 15% in 2019 so far.
  • China announced to waive the tariffs on a few of the U.S soybean and pork products.
  • Associated British Foods cited as the top gainer in the stock market on Friday.

U.S – China trade complications have made it increasingly difficult to analyze the global financial markets with precision in 2019. Despite several tensions including Washington’s signature on Hong Kong’s prodemocracy bill and China insisting for a rollback on the previously imposed tariffs, both the Trump and Xi Jinping governments have recently hinted at the prospect of an imminent phase 1 deal.

Footsie’s Performance In 2019 So Far

Owing to the progress in trade talks, the United Kingdom’s blue-chip FTSE 100 index was seen climbing out of a near two-month low on Friday. Opening at 7,137.85 on Friday, the index has recently printed a high of 7,197.09 for the day. Footsie’s overall performance in 2019 has been fairly upbeat regardless of the macroeconomic uncertainty circling the trade tensions and the expected departure of the UK from the European Union.

FTSE 100 was reported at 6,734 at the start of 2019. The index recorded an all-time high of 7,687 in July. The pattern in the consequent months, however, has been slightly downbeat that has brought the index back to around 7,190 where it is currently starting to settle. The FTSE 100 index has noted a gain of slightly under 15% in 2019 so far.

The index printed a 0.4% growth on Friday morning with miners and trade-sensitive stocks cited to have contributed to the most. The FTSE 250 index followed in its steps and recorded the same 0.4% growth as well.

Tensions were seen higher between the two largest economies of the world earlier this week. Following a recent announcement from the White House, however, that the trade talks are headed in the right direction along with China announcing to waive tariffs on a few of the U.S soybean and pork products as an expression of confidence, the overall sentiment was reported to have improved in the global stocks.

Associated British Foods Cited As The Top Gainer On Friday

Analysts have also added that Associated British Foods has topped the list of gainers on Friday. Owing to the British multinational food processing and retailing company maintaining the earnings target, the stock was seen trading 2% higher earlier on Friday. The company recently announced significant growth in the sugar and grocery segment of its business.

President Trump had announced the prospect of waiting for the 2020 presidential elections before a trade deal is finalized with China. As per the experts, if Washington still realizes such a plan, the consequent impact on the global financial markets will be significantly downbeat due to the extension of the trade war.

About the author

Michael Harris
Michael Harris
I began trading in my early 20's at a local company and since then have combined my knowledge and love of content to become a news writer. I am passionate about bringing insightful articles to readers and hope to add some value to your portfolios!

Leave a Reply

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.